The reductions of temporary and contract workers comes after Israel's
flag carrier had cut its workforce by 126 people to 6,136 in the 12 months ended September 2012.

El Al did not specify how much it would save from the measure but said it would also make further organizational steps to lower its overhead.

"Due to the financial situation of the company, rising competition in the aviation sector, in Israel and in the world, and the difficulty in applying the current cost structure of the company, it was decided to take efficiency steps," El Al said last week.

El Al said it was continuing to negotiate with workers and its union to renew a labor contract and take the needed steps to streamline the company.

The airline posted a 79% rise in third-quarter profit to $37.4 million after recording losses in the first two quarters of 2012.